What is the 50% Profit Exemption and which posts does it cover?

Thanks to recent developments, the supports implemented by state mechanisms have made it easier day by day to market products and services on digital platforms. In this sense, creating a business line in the field of e-export and conducting trade through this channel has become more accessible with each passing day. Especially in facilitating women who are not employed in any company to market their handcrafted products and in helping young entrepreneurs realize their dreams, the fact that these commercial activities are so accessible has an undeniable impact. In addition, state supports and tax exemptions play a major role in supporting entrepreneurs, especially those engaged in commercial activities. Moreover, commercial activities carried out through the right supports and guidance become an important factor in increasing the gross national income in proportion to the earnings they provide, contributing significantly at the international level. With these new developments, supports implemented by the state have made it easier to market products and services in the digital field.

In this period where dreams are so close and accessibility has become this easy, the “50% Earnings Exemption Application” has provided a great advantage to e-commerce entrepreneurs and those already engaged in e-export.

50% Earnings Exemption Application

With the sale of products abroad via e-export, the tax exemption granted to individuals and companies came into effect at the beginning of 2021, was published in the Official Gazette of the Republic of Turkey with Presidential approval, and took its place at the center of international e-commerce agendas after being accepted by the Turkish Grand National Assembly.

Within the scope of Law No. 7256, with the reduction applied to taxes together with certain restrictions as of January 1, 2021, a very advantageous door was opened for those engaged in e-commerce. Within the scope of the laws, with this reduction applied, a 50% earnings exemption is applied to individuals and companies that sell their products abroad through e-export or so-called micro export, providing a very significant commercial advantage. In this article, we will address very important topics for e-exporters such as “What does the 50% earnings exemption cover?” and “How can one benefit from the earnings exemption?”.

What Is the 50% Earnings Exemption Application and Which Shipments Does It Cover?

First of all, we should state that the main condition to benefit from the 50% earnings exemption is that the sales made must definitely be carried out within the scope of micro export. For an export to be made within the scope of micro export, it must comply with the specified micro export standards in terms of number, weight, and product value. In this context, you can access all information about micro export in our articles where we explain e-commerce and micro export from start to finish. Unfortunately, exports in the service sector cannot benefit from the 50% earnings exemption. Exports carried out in fields such as design, software, and services are outside the scope of this exemption.

E-exports carried out via the “Electronic Trade Customs Declaration (ETGB)” issued by the postal administration or express cargo carrier fall within the scope of the “50% earnings exemption.”

How Is the 50% Earnings Exemption Application Calculated?

We can explain the 50% earnings exemption application with an example as follows:

For example, if the sales price of a product is 250,000 TL and the cost of the product is 150,000 TL,

when this amount is taken as a basis, a profit of 100,000 TL is obtained. Within this framework,

50,000 TL, which corresponds to half of the profit obtained within the scope of the 50% earnings exemption,

will not be subject to tax.

If you are wondering how to benefit from tax exemption while doing e-commerce, you can read our article.

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